6. Answer part A, B, and C.

6. Zebra Group holds total assets of $25 billion and equity capital of $2 billion and has just posted an ROA of 0.95 percent. What is the financial firm's ROE? Alternative scenarios: a. Suppose Zebra Group finds its ROA climbing by 25 percent, with assets and equity b. On the other hand, suppose the bank's ROA drops by 25 percent. If total assets c. If ROA at Zebra Group remains fixed at 0.95 percent but both total assets and d. How would a decline in total assets and equity by half (with ROA still at 0.95 capital unchanged. What will happen to its ROE? Why? and equity capital hold their present positions, what change will occur in ROE? equity double, how does ROE change? Why? percent) affect the bank's ROE